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Thousands of British manufacturers risk slipping into stagnation unless the Government and industry does more to help them adapt to the "fourth industrial revolution", a new report warns.

NatWest said many mid-sized manufacturers, already "cautious of innovation and risk", were in danger of becoming "isolated" as automation increases and working practices alter.

While the UK's biggest businesses had the diversity and international reach to adopt new technologies and smaller companies were "nimble" enough to avoid being "stifled by process", it said medium-sized manufacturers often lacked direction and support.

A survey by the bank showed many business leaders were not even aware of the government support available to help them innovate or expand overseas.

The poll of almost 300 manufacturing executives in charge of businesses with a turnover of between £5 and £50m showed 91pc of companies described expansion as "crucial" over the next five to 10 years.

However, 38pc said they had no plans to do business overseas, while 14pc lacked any business plan at all.

However, the report by NatWest, which will be launched at this week's EEF annual manufacturing conference, says the support currently offered to UK mid-sized companies lagged far behind their German counterparts.

While many Germans rely on an established network of banks, R&D centres and skills hubs which had been "fine-tuned for half a century", UK companies were often unaware of the help available to them.

Richard Hill, head of automotive and manufacturing at NatWest, said many mid-sized companies were now at a "tipping point".

"The industry is being driven by new technology and the UK is well placed to take advantage of that. But mid-sized manufacturers are at a tipping point. We need to either really go for it in terms of mentorship and support or stagnate and be left standing still."

NatWest said banks also had to do more to support businesses " by stepping outside traditional bank lending practices" and offering support to businesses wanting to claim tax credits.